Investors interested in stocks from the REIT and Equity Trust - Residential sector have probably already heard of RPT Realty and Equity Residential (EQR - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
RPT Realty and Equity Residential are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that RPT has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
RPT currently has a forward P/E ratio of 11.62, while EQR has a forward P/E of 14.97. We also note that RPT has a PEG ratio of 2.92. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. EQR currently has a PEG ratio of 3.07.
Another notable valuation metric for RPT is its P/B ratio of 1.17. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, EQR has a P/B of 1.91.
Based on these metrics and many more, RPT holds a Value grade of B, while EQR has a Value grade of D.
RPT has seen stronger estimate revision activity and sports more attractive valuation metrics than EQR, so it seems like value investors will conclude that RPT is the superior option right now.
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Investors interested in stocks from the REIT and Equity Trust - Residential sector have probably already heard of RPT Realty and Equity Residential (EQR - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
RPT Realty and Equity Residential are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that RPT has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
RPT currently has a forward P/E ratio of 11.62, while EQR has a forward P/E of 14.97. We also note that RPT has a PEG ratio of 2.92. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. EQR currently has a PEG ratio of 3.07.
Another notable valuation metric for RPT is its P/B ratio of 1.17. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, EQR has a P/B of 1.91.
Based on these metrics and many more, RPT holds a Value grade of B, while EQR has a Value grade of D.
RPT has seen stronger estimate revision activity and sports more attractive valuation metrics than EQR, so it seems like value investors will conclude that RPT is the superior option right now.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.
See Stocks Now >>
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